The Malaysian government said October 24 that it will allow the Australian company Lynas Rare Earths to continue importing and processing rare earth materials in the country until March 2026.

Previously, the government had ordered the company to move its leaching and cracking processes out of the country by the end of 2023, according to the Associated Press. The company was also barred from importing raw materials that contain radioactive elements into the country.

Malaysia’s Science Minister Chang Lih Kang said that the two conditions for renewing Lynas’ license were removed after the company proposed a new method to extract thorium (a radioactive element) from the rare earths its imports as well as from the more than 1 million tons of radioactive waste sitting at Lynas’ Pahang refinery.

Chang said that he considered the choice a win-win for both sides because it “fulfills our decision not to allow the continuous accumulation of radioactive waste” at the plant.

If the new extraction method is successful, Chang said that the waste can be disposed of, allowing the thorium to be commercialized and eventually sold to overseas nuclear plants.

Lynas backed the decision, with CEO Amanda Lacaze saying it will provide a foundation for the development of Malaysia’s rare earths market. 

Last week, Lynas Rare Earths announced that it would be temporarily pausing most of its operations in Malaysia to make upgrades to its Pahang plant. Those upgrades were deemed necessary if the company’s license was updated.